REGISTERED COMPANY NUMBER.. 08820009 (England and Wal•sl REGISTERED CHARITY NUMBER: 1156866 REPORT OF THE TRUSTEES AND UNAUDITED FINANGIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 FOR PHELIX RESEARCH AND DEVELOPMENT MHA ltrading nama ofmaclntyre Hudson LLPI Limita liability partnership in England & Wa￿5 Registered number OC312313 Ewed House Oak Tree CtyJrt C8rdrff Gate Business Part( CARDIFF County ofcardiff CF23 8RS PHELIX RESEARCH AND DEVELOPMENT CONfENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Page R•port of th8 Truste88 1 to 3 Indep8ndenl Examlnerfs Report Statement of Flnan¢ial Activiti05 8alan¢e Sheet Not¢8 to the Flnan¢ial Statements 7 10 11 PHELIX RESEARCH AND DEVELOPMENT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 Tha trustees. who a￿ also dire¢knr5 of the charity for the purposes of the Companw Act 2006. present Iheir report wth the financial State￿Ents of the charity for the year er￿¢￿ 31 De￿mber 2022. trustees have adopted the provisions of A¢counb'ng and Reporting by Charibes.. Statement of Recommended PraL*ce applicable to charilie$ prepaTrng their accounts in accwdance wilh the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 lelfeciNe 1 January 20191. OBJECTIVES AND ACTIVITIES Objective8 and aims T1￿ chartys objects a$ ststecl in its Art￿￿5 ofAs5LKiat¥)n arè.. o proted arKI promote the health of the public in particular by research Into Ihe naluie cases, diagnosis. prevention. treatment and ojre of chron￿ infe¢th"on disea5e5, induding th8 devebpment of findings of research into pract￿1 appli¢ations for the preventh?n, treatment and cure of chronr¢ Infethon diseases and in furtherance of that primary obiedwe, to support infcmiation and raise public understanding of such matters, and tg $uprx)rt th& ￿searCh on bactetiophage$ for bacterial Infection5 in a chronic phase and to develop therapeutic program5 based on bacteriryhages.. Phelix Research & Developm2nt Iphelix R&DI ￿ a medical research charity. The charity WO￿ hand in hand wdh Ph81ix Fran￿, registered in Fra[1￿ as an'Associalion d'lnlérét Générar. Its team 1$ a Strong cryartner5hip of heatthea￿ profe$$ionab {prad￿OnerS, imrnunologists and universty resoarthets. amongstthem Le1￿$ter Universtyl and voluntsers, working together t¢ rea¢h the chanty's key ¢biEctives. The overall aim is to develop phaga-based diagnostic and treatrnenl of Lyme disease. Ttrdate, we have devdoped a nov•1 phag&based diagnostic meth(KJ targeting Lytne Borrelia 51rsins. This novel diagnosti¢ methott showed higher 58nsiliYity compa￿j to the curient diagnostic methods. Wrth further development, our phage-based melhtsj coukj have the P￿er to di8tingui8h befyveen athNe and non-actwe Lyme infection and offer a promBe of early Lyme diagn05tics. In ￿ditIOn to our pioneer woth tn Lyrne diagn05tics, we have also developed our pipelines of meth￿OI0gE5 in isdation a*)d ident￿￿ation of phages that $peofKally Infect Lyme 8Drrelia strain5, and we are currentty activety $c￿enIng lor phages. On* we identify phages, we will test the efficacy of these phages in killllig Borre￿a strain, aThS d8vebp them towards t￿rap￿utie$. Activity updats Actiwly in 2022.. lrnproving the sen5thwity of the Phage Based borrelia test wth ourpartner in Be￿lUM, RedLab, who are ir* charge of the commeraalisaknn ofthe Test. Expk)nng new technologi&5 in order to aulomats the DNAextra¢tion from biolwical samples. University of Le1￿$ter and Phelix Research and Develowrent. Trying to r￿e$￿￿ a Phage 8ased testfor Batur*lla 5p. as the Previo￿ test did not show prtrnising sensitivity. Univer$ty of Leitsster aThS Phelix Research and Developnenty. workiw on Ihe next res•arch paperon Borrelia Miyamotoi. Finalising the documents forthe filing ofthe Patent of tF* Botrelia phage based test UK. USA. EU (Patent attorn Murgrtroyd law firml. OBJECTIVES AND ACTIVITIES Publi¢ beneflt The Iwstees can confinm that they have Complied wth the duty in Section 17 of the CharilK* Act 2011 to have due regard to pum¢ benefit guidan￿ published by the Chartties C¢mmission, S¥gnifi¢ant activities that we undertcok during the year that dornonstrate public benefIta￿ set out above. FINANCIAL REVIEW Flnan¢lal position During tl* year, thè charily re￿Ned irwme totalling £60.205 atKI incutred expB￿ditUr8 of £80.501, gwiTra a net loss posthon of £20,296 Phelix R&D rec4)gnised inc4)rne of £52,908 from RedLab Belgium fv(KtT the commerualKsatK)n ol the Ph8ge based lest fw the year 2022. Page I ￿￿(1¥ RÈSEARCH Ahv DtvtLL)PUFNT RCPORT OF TIWSTE£S FOIiTHC YfAR EMDFD 31 DFCFV,BER 2022 FIIIANCIAL RFV*.I STRItTVRE. GO*RNMCE •24D MLNAGIMfNT Crdance with the Financial Reporbng Standard applicable in the UK arKI Republic of IrePand IFRS 10211. I have no concems have come 8cross no other matters til connection wilh examination to whith attentK)n shoukl be ¢*awn in this reFQrt in orderto enable a F￿Per under5tandng ofthe acojunls to be rea¢hed. Jul'a Mortimer MHA ltradirg name of Ma¢lntyfft Hud50n LLPI Limited liabilty partnership in England & Wale5 Registered nurnber CC312313 Elfed House Osk T￿e Court Cardiff Gale 8u$nes$ Pa CARDIFF County of Cardiff CF23 8RS Dale.. Page 4 PHELIX RESEARCH AND DEVELOPMENT STATEMENT OF FINANCIAL ACTivmES (INCORPORATING AN INCOME AND EXPENDtTURE A¢¢OUNTI FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Total funds Unr85trict8d fund Notes INCOME AND ENDOWMENTS FROM Donation5 and legacYa5 21 55 Charitsble a¢tivitie5 Research 60,184 90,243 Other income 4,895 Totsl 60,205 95,193 EXPENDinJRE ON Charitable activltseB Research 80,501 95,918 NET INCOMEIIEXPENDITURE) 120,2981 17251 REcONc￿lATION OF FUNDS Total funds brought fO￿ard 1327.4631 1328,n81 TOTAL FUNDS CARRIED FORINARD 1347,7591 1327,4631 The noles frjmi part of Ihese financBI statements Page 5 PSEUXRESLARCII AkD DrTrFLOP¥ENT LANCE SFfErr 31 DFCFMBFR 22 FIXED ASSÈ"¥S InLryjbe Jw# CURRkMfAS5ers ?%786 at 78.C76 ciirDifoRS P4FrtiAtRÈNT A55ETS 37.89t IQTAL A5SUS LCSS CURXt.NT LLA8¢LIIIE$ 34,47 CREL¥TORS nthv*S,'ulir4J dir.'thr.I orc w¥r 1318.4W21 NEY ASSErs 1347 7552 FIH•)5 T￿lAL FUNDS El¢, cJJTr.Tr3ry S enUL4X tn ¢xeripiatsry dloer &¥JLYi 47T Oi OJmwi¢x L-, 2IxK. for.￿ ¥e3.' e,"A 31 X?? rtyr.tstt-. T-e *Jsxae￿￿orce •r,- r¢¢uir*.eft.A Siihptt ¢yTr.p4?.r- -.LSfC. fr48MO3'. Ststenèr&ts ￿ere ".thsf¢xYxJ by IhL i*,w. J.. I'l￿¥* for IS9Je on ..... .. .. Ir F A C C J ov¥C'.- It￿%￿-L. 7hL' loryr. p¥.. PHELIX RESEARCH AND DEVELOPMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 STATUTORY IhlFORMATION PheliK Re588rth and Developrrent ￿ a ￿gistered charity and private company Ilmlted by guarantee having no share capital. ￿ts￿er5 have agreed to contribute £10 in Ihe event of a winding up. The cornpany is incorporated Trn Ihe Unitad Kingdom and its regi8tered Offi￿ is 37 Langton Street. Chelsea, London. SIMOOJL The nature oflhe Cornpany's operations and prinapal acti%Mes i8 disdosed within the Report of th8 Trustees. financ4al ststements are presented ift Slerting l£l. the c4mpany'$ functional curyenGy, and rounded to Ihe nearest pourKI. The significant accounting policies applied in the preparation of these financial statements are Set oth below. These icwès have been co￿lS1ent￿ applied to all y¢ar5 presented unless othewse Stated. ACCOUNTING POLICIES Basis of prepa￿n9 the finarttial $taternEnts The financial statement$ of the ¢haniable company. whi¢h is a public benefil enb.ty urtdgr FRS 102, have been prepared in accordance wth the Charilres SORP IFRS 1021 Amjnting and Reporting by Charities.. Slatemenl of Recommended practi￿ applicable to charitie5 preparing their accounts in accordance wfh the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS 102 S1A Update Bulletin 11 leffe¢cNe 1 January 20191,, Finanoal Reporting Stsndard 102 The Financial Reporting Standard applicthe in the UK and Republ￿ of Ireland 8nd th8 CoMpan￿S Acl 20W The finanual stat&)wts have been prepared under the hi5tottcal c05t tonvents'on. There have been no materd departu￿ from the Financial Reportiw Sian¢ard 102 1 Going concern The charity has Ihe owoing support of Ihe trustees. Incom• All income is rewgni5ed in the Statement of Finanual ActivrtBs ortt the charty h85 entitlernent to the fvnds, it 15 probable th8tth* income will be r*ived and the amount Can be measured Elrauy. Expewtditure Liabilities are recA)gnised as expenclrture as $oDn as there 1$ a legal ry constructive obl￿all&n Committing the chanty to that expe￿ltu￿, il 15 probabk that a transfer of eConC￿￿ benefft5 wll be required in setllernent and the amount of the obligation Can be rneasU￿d ￿lIablY. Expenditvre is a¢counted fw on an accruals basis a[￿ has been classified under headings that aggregat8 all wst related to the category. lthere costs Gqnnot ￿ dire¢Uy attiibuted to paitiwlar headings they have ken allocated to activib'es on a ba515 consistent wth the use of resour￿5. Intsn9lble a$s¢ts IntaTrJible assets acquired separately fff)m a business are capitalsecl at cost. Subsequent to initial recognition, intangible a5se15 are stated at cost less accumulated 8mcrtisal￿n and accJJmulaled impairment. Inlangibk assets a￿ amortised on a straight line ba$ls over their estimated usefrJl lrfe. Ttr ca￿Ing value of inlaThJible assets is reviewed for impaimient if events or changes in csroJrnst8nces indi￿te the carying value may not ￿ recoverable. The useful ecowmic INe5 of intangible a55ets a￿ as follows.. Patents- 10 yg8rs Taxation The tharity is ememptfrom c£Yporation tax on its tharitable activities. Fund accounllng Ltnte5tricted funds can be used in accordance with the tharitab￿ cl)jectwes at the discretion of the Iruslees. Page 7 continued... PHELIX RESEARCH AND DEVELOPMENT NOTES TO THE FINANCIAL STATEMENfs. continued FOR THE YEAR ENDED 310ECEMBER 2022 Accoup¥nNG POLICIES. ¢ontinugd Fund ac¢ountin9 Restrictsd fvnds can only be used for particular restricted purposes within the objects ol the ¢harity. Restrictior arise when spear￿d by the donor orwhen fiJn(l$ are raised for particular restricted purpose5. Furtherexplan8tion ofthg nature and purpose oteach lunrl Is induded in th& notes to the financkql ststements. CHARITABLE ACTIv￿lEs COSTS Di Costs (see note 41 Support 03ts Totals Research 80.363 80,501 DIRECT COSTS OF CHARITABLE ACTWITIES 2022 2021 Fees to Le[￿ster University Legal & profes8tonal fee$ Govemance costs Foreign C￿r￿n¢Y{gain)ltysses Website Maintenan t)epreci8b"on 73.680 780 1,374 1,751 ,146 3.250 780 11.1391 629 2.189 2,189 80,363 95,855 NET INCOMEIIEXPENDITUREI Net in￿me1{eXpenditure> Staled afterchargingllcreditingl.. 2022 2021 Patents and licences amortisatK)n 1ndeper￿ÈnteKarnInation 2.189 2,189 780 TRUSTEES. REMUNERATION ANO BENEFITS There was no Irusl&s' rernUr￿ration or other banefil$ for the year ended 31 D￿mL￿r 2022 or for the Feriod ended 31 D8cember2021. Trustee8' expenses The￿ were no tW5tees' expenses Pa￿ for the year ended 31 December 2022 or for the periLyJ ended 31 ￿e￿nber 2021. Page 8 ¢Ontinued... PHELIX RESEARCH AND DEveLOPME NOTES TO ThE FINANCIAL STATEMENTS- continuod FOR THE YEAR ENDED 31 DECEMBER 2022 COMPARATIVES FOR THE STATEMENT OF FINANCIALACTivmES l income and expe￿11￿￿ in the period to 31 Dècenlw2022 was Un￿trICted. INTANGIBLE FIXED AssErs Palenls Ii¢ence5 COST At 1 January 2022 and 31 r)ecember 2022 21,887 AMORTISATION Al 1 January 2022 Charge for year 8.756 2.189 At 31 December 2022 10,945 NET BOOK VALUE Al 31 ￿tsrnber 2022 10.942 At 31 December 2021 13,131 DEBTORS.. AMOUNTS FALLING DUE WITHIN ONE Y&IR 2022 2021 A¢¢rued in¢0rn8 25.786 18.510 io. CREDITORS: Ar￿uNT5 FALUNG DUE WITHIN ONE YEAR 2022 2021 AcrAals and deferred income 54,531 21,724 11. REDITORS: AMOUNTS FALUNG DUE AFfER MORE THAN ONE YEAR 2022 2W27 Loan from Irustee Other loan$ 311,305 70,941 311.305 67.187 382.246 378,492 The loan from trustee has a term of six years and prowdes funding laolities to the charity lo undertake its research wo￿. The loan 1$ intere$t free and will only be repayab￿ after the charity secu￿$ suffiuent independentfunding. addrtK)Tral loan has a terni of four years and also provides lunding facilities lo the charity to carry out rt5 research work. The loan is intsrest free and wll only b8 repayab￿ If revenue is generated fvom fLensiNJ its patents. Page 9 eonbnued... PHELIX RESEARCH AND DEVELOPMENT NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENOED 31 DECEMBER 2022 11 MOVEMENT IN FUNDS Net Movement in funds At 31112r22 At 111r22 Unrestri¢ted funds Gereral fund 1327,4631 120.2961 1347,7591 TOTAL FUNDS 1327,4631 120.2961 1347,7591 Net mOve￿￿￿t in funds, inclutted tn Ihe aLM)ve are os follows.. Incomir resources Resources expended Movement in fund5 Unr*stri¢ted fund5 General fund ￿￿,205 180,5011 120,296} TOTAL FUNDS 60.205 180.5011 120,2*1 Comparatlves for m¢*v•mont in funds Net movernenl in funds At 31112r21 At 111r21 Unrestrscted fund5 General fund 1326,7381 17251 1327,4631 TOTAL FUNDS 1326,7381 17251 1327,4631 Cornparatwe ret nN)vement In lund5. Included in the above are as foll(Ms'. Incoming Resources exPer￿ed Movwnent in lunds Unr8Stricted funds General fund 95.193 195,9181 17251 TOTAL FUNDS 95.193 195.9181 172$) Pag8 10 conty'nued... PHEUX RESEARCH AND DEVELOPMENT NOTES TO THE FINANCIAL STATEMENTS- continugd FOR YHE YEAR ENDED 31 DECEMBER 2022 13. RELATED PARTY DISCLOSURES The￿ were no ￿lated paty transactions for Ihe year 31 Oecember 2022 Ihat require dis¢k)$ure, other than th8 loan from trustee a$ disdosed in not8 11. Page11